Various legal ways exist for their establishment, all of which are destined to assure a steady presence with a rigorous tax control and protection of the parent company.

We will analyse the three most frequent cases for establishment from a commercial perspective:

Branch of a foreign company

Subsidiary

Joint Ventures

An analysis of the risk factors that influence those companies with multinational operations to protect them against the possible compulsory
purchase or by Government takes over.

The company should develop a rigorous analysis of the risk factors that influence on companies with multinational operations to protect them against the possible compulsory purchase or by Government takes over.

Establishing a company in the United States. One company is made up of 150 full-time workers and manufacture bronze statues that are on a marble support. The designs are exclusive and using them; they make a substantial production of each one; even though it is a gift item with certain exclusive value; they are pieces whose originals were produced in large quantities. In this case; we will analyse eleven decisions taken by the Board of Directors.

We tend to associate developing countries with poverty and suffering.
This image is reinforced by the media because they inform us only about disasters in these countries and present their people as victims of circumstances beyond their control. The reality of the developing world is a lot more varied and complex. In the first place, one has to be careful with generalisations. For example, the situation in recently industrialised countries like Korea, Malaysia, China, Mexico, and Brazil is very different to Less Developed Countries like Bangladesh, Senegal, Ghana, Kenya, Morocco, Nicaragua, El Salvador, and Peru. Besides, the situation in the developing World is not static. In the last decades, countries in South-east Asia have gone through
significant progress in their standard of living, while countries from the Sub-Saharan Africa are poorer nowadays than they were in the middle of the 1960s.

The socio-cultural context of each developing country has prime importance in the sale of a product. Religion, local traditions, history, superstitions, all these form part of a system of values that are called culture.

The process of obtaining permits or licences and establishing a business in a developing country can be as long as it is costly. Much of the Government earnings come from such
licences. The trouble of corruption can also present itself.

Increasingly, the social balance of a company, demands new management parameters of CORPORATE GOVERNANCE that can convert the companies into real engines of development and well-being in the place they are operating.

The situation in the former Soviet Republics. Analysing the actual situation in the Russian Federation (Russia) implies analysing a
series of points synthetically, so much so that probably the different points could be seen as headings.

Analysis of the process of
reconstruction of industry in the former Soviet Republics.

Entities of a multinational character like the European Union (EU), the Inter-American Development Bank, the African Development Bank, and the International Monetary Fund (IMF), amongst others, direct significant quantities of economic resources towards social and Economic restructuring in the developing countries, so that in this way they can speed up growth. Therefore, one is transferring the “know-how” towards countries in need for this knowledge.

(c) EENI- Business School & Hispano-African University of International Business